Day: August 25, 2024

Accounting Multiple Choice Question – 25 August 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc is preparing its financial statements for the year ended 30 June 2024. Its initial trial balance shows the following balances:

  • Accruals as at 1 July 2023 £948
  • Distribution costs paid via the bank £130,647

Of the accruals as at 1 July 2023, £586 related to distribution costs.

As at 30 June 2024 the equivalent figure for distribution costs is £654.

In Alex plc’s Income Statement, the figure for the year-ended 30 June 2024 for distribution costs is?

Select ONE answer:

  1. £129,407
  2. £130,579
  3. £130,715
  4. £131,887

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – Dr Bank Payments £130,647 + Closing Accrual £654 – Cr Opening Accrual Reversed £586 = £130,715 I/S
  4. Not correct

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